Chapter 4
The business and environment change
Change is unmeasurable and uncontrollable, causing instability and uncertainty
Rapid pace of change due to the rise of a knowledge economy
Business organizations operate in a constantly changing environment due to technological innovations, economic
fluctuations, legislation, and social factors, and can cause industries to change or disappear
Management must align with the environment to identify opportunities and threats, ensuring full utilization of
opportunities and potential threats (SWOT)
Composition of the business environment
Management must adapt to environmental changes due to systems approach
Rising instability in business environment affects all variables
Management must understand environment composition for survival in competitive environment
The business and environment change
Change is unmeasurable and uncontrollable, causing instability and uncertainty
Rapid pace of change due to the rise of a knowledge economy
Business organizations operate in a constantly changing environment due to technological innovations, economic
fluctuations, legislation, and social factors, and can cause industries to change or disappear
Management must align with the environment to identify opportunities and threats, ensuring full utilization of
opportunities and potential threats (SWOT)
Composition of the business environment
Management must adapt to environmental changes due to systems approach
Rising instability in business environment affects all variables
Management must understand environment composition for survival in competitive environment
